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Old 05-18-2019, 08:17 PM   #21
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Re: Workers Comp Audit...


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My reading comprehension is pretty good Kap.

Not my experience.

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You forgot the first part... which is what I was referring to in my comments and thought fairly obvious and acknowledged and referenced upfront I could be wrong though as well as pointed out it's good to have when you need it which addressed both of your claims...

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Workmans comp is a joke. It is a way for the state and the insurance co's to hijack your business.
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Old 05-18-2019, 09:56 PM   #22
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Re: Workers Comp Audit...


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You forgot the first part... which is what I was referring to in my comments and thought fairly obvious and acknowledged and referenced upfront I could be wrong though as well as pointed out it's good to have when you need it which addressed both of your claims...

This clarify? Remember it's not just the insurance co. It's politics too

https://www.stltoday.com/news/archiv...fe167bc7d.html
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Old 05-20-2019, 08:44 AM   #23
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Re: Workers Comp Audit...


The part where Im a little confused is that we have paid some subs by checks and have them on 1099 as they are independent contractors and never have anyone on payroll. Not sure how everyone here runs their business, but 99% of the time we deal with independent contractors. We're pretty small and don't do enough volume to run payroll etc. I guess when it's time for our first audit, we'll see what happens. I'm pretty sure these subs don't carry their own worker's comp.
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Old 05-20-2019, 09:06 AM   #24
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Re: Workers Comp Audit...


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The part where Im a little confused is that we have paid some subs by checks and have them on 1099 as they are independent contractors and never have anyone on payroll. Not sure how everyone here runs their business, but 99% of the time we deal with independent contractors. We're pretty small and don't do enough volume to run payroll etc. I guess when it's time for our first audit, we'll see what happens. I'm pretty sure these subs don't carry their own worker's comp.


You might have to pay on them if they dont carry it

It all depends on your state. Instead of worrying about it I would call your insurance agent and clarify so this way going ahead you know all the rules


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Old 05-20-2019, 10:15 PM   #25
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Re: Workers Comp Audit...


MKB - you best be sure they truly are independent contractors. There is more to it than 1099's. When i was honest with myself i knew the one or two guys i was calling subs, and they were getting 1099's, really were not subs. I knew i was taking a risk if one got injured.

I too am a small operation but the monthly cost for a payroll company that handles all my deductions, withholding, BWC etc is well worth the small cost. I know it is done right and always on time, and my guys are covered.

A final note, when i send out an estimate to a new customer i enclose a cover letter and in it i explain how my company is insured, registered and bonded etc but i also let them know all my employees are covered with BWC and explain the benefits to them. All certificates are enclosed also. I think it makes a difference.
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Old 05-21-2019, 03:47 PM   #26
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Re: Workers Comp Audit...


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MKB - you best be sure they truly are independent contractors. There is more to it than 1099's. When i was honest with myself i knew the one or two guys i was calling subs, and they were getting 1099's, really were not subs. I knew i was taking a risk if one got injured.

I too am a small operation but the monthly cost for a payroll company that handles all my deductions, withholding, BWC etc is well worth the small cost. I know it is done right and always on time, and my guys are covered.

A final note, when i send out an estimate to a new customer i enclose a cover letter and in it i explain how my company is insured, registered and bonded etc but i also let them know all my employees are covered with BWC and explain the benefits to them. All certificates are enclosed also. I think it makes a difference.

Thank you sir, will keep that in mind. So you must stay busy enough to have payroll every 2 weeks for the guys and they clock in and out etc?
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Old 05-24-2019, 12:27 PM   #27
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Re: Workers Comp Audit...


If your subs don't carry WC, you will have to pay for it out of your pocket.

All my subs have to send me their COI, and I have to send it to my agent to keep on file. I have one sub I use that doesn't have WC, so I deduct the cost from his check (as agreed upon by both parties). I then have to claim him, just as my other employees.
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Old 05-24-2019, 02:53 PM   #28
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Re: Workers Comp Audit...


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If your subs don't carry WC, you will have to pay for it out of your pocket.

All my subs have to send me their COI, and I have to send it to my agent to keep on file. I have one sub I use that doesn't have WC, so I deduct the cost from his check (as agreed upon by both parties). I then have to claim him, just as my other employees.

I dont think that is the case in every state

I know it is where I live in Illinois unfortunately but I think my agent said that every state is not like that


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Old 05-24-2019, 08:42 PM   #29
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Re: Workers Comp Audit...


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I dont think that is the case in every state

I know it is where I live in Illinois unfortunately but I think my agent said that every state is not like that


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Here you don't need WC if you are a sole proprietor or a partnership. And if those are my subs, I don't need WC on them. If you have employees you must have WC, so again I don't have to have it for my subs with employees.
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Old 05-24-2019, 09:37 PM   #30
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Re: Workers Comp Audit...


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Here you don't need WC if you are a sole proprietor or a partnership. And if those are my subs, I don't need WC on them. If you have employees you must have WC, so again I don't have to have it for my subs with employees.


Yes even in Illinois I donít need workers comp if I am a sole proprietor or partnership either unless i have an employee then i have to have it

however i do alot of work for general contractors and businesses that require me to carry it even though i usually dont have employees, a zero payroll policy I believe itís called

And since I have WC if I sub anything out they will audit me and all of my subs are required to have it otherwise i have to pay for them

Basically I have to pay for Workerís Comp. policy that doesnít cover anything since I have no employees currently




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Old 05-29-2019, 10:27 AM   #31
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Re: Workers Comp Audit...


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Originally Posted by Irishslave View Post
Workmans comp is a joke. It is a way for the state and the insurance co's to hijack your business. God forbid anyone actually gets hurt.....it goes to litigation before they coin up and the lawyers get greased.

It's long been time for reform because as it is now it's a racket
I agree

it's a joke, audited by the state, audited by the ins company, I love sending my typical reply letter, sure i'm on it, I'm a small business owner I'll get to you when I can, if you have a problem with it, send me your supervisors name and number and I"ll speak with them

usually shuts them up for a couple months then they come back at you
the irs and the state are the worst, I actually refused an audit a year ago by an ins company told em to raise my rates so they did

all these people running around with cash businesses, i"ve lost more guys to someone paying cash than I can ever imagine, do they ever get audited do they ever get in trouble?

its ok for a mega corporation to subcontract all day long, but it's not ok for a small business, the gov't hates small businessess

running a legit business is stupid, never do it, get your check made out to you and cash it the payee's bank, done, winning

I'm paying over 40k a year in insurance, completely stupid, it'll go up another couple grand this year I'm sure, why not

some d bag auditor, you got to be all nice to and show them everything even the wart on your, in the meantime the auditor is a complete prick
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Old 05-29-2019, 12:05 PM   #32
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Re: Workers Comp Audit...


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its ok for a mega corporation to subcontract all day long, but it's not ok for a small business, the gov't hates small businessess



Most large corporations are self insured and dont need to pay workers comp

But they pay out directly when employees or subs sue them

For example i work for union pacific and they dont have workers comp

If i get seriously hurt i have to sue them to be made whole

Granted it saves them the burden of paying WC but to be exempted you have to have funds (cash) and assets on hand to be able to settle millions of dollars of settlements


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Old 05-29-2019, 04:14 PM   #33
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Re: Workers Comp Audit...


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I agree

it's a joke, audited by the state, audited by the ins company, I love sending my typical reply letter, sure i'm on it, I'm a small business owner I'll get to you when I can, if you have a problem with it, send me your supervisors name and number and I"ll speak with them

usually shuts them up for a couple months then they come back at you
the irs and the state are the worst, I actually refused an audit a year ago by an ins company told em to raise my rates so they did

all these people running around with cash businesses, i"ve lost more guys to someone paying cash than I can ever imagine, do they ever get audited do they ever get in trouble?

its ok for a mega corporation to subcontract all day long, but it's not ok for a small business, the gov't hates small businessess

running a legit business is stupid, never do it, get your check made out to you and cash it the payee's bank, done, winning

I'm paying over 40k a year in insurance, completely stupid, it'll go up another couple grand this year I'm sure, why not

some d bag auditor, you got to be all nice to and show them everything even the wart on your, in the meantime the auditor is a complete prick
wow 40k in insurance? I/m new to this, but another GC I asked about WC said he expects to pay 1% of total sales to WC, does that seem right? I have no idea how he does it since all labor is subbed out and Im pretty sure his subs dont all carry WC
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Old 05-29-2019, 10:01 PM   #34
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Re: Workers Comp Audit...


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Yea especially since my comp rate is 26%

Chit aint cheap


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You're only 1.5 hours South of me, maybe a tad more, and you guys are getting hosed. We pay about 14.9% here for masonry up to 3 stories. On concrete footwork, it's just below 10%. I have fallen into some sort of "sweet spot " for the last 10-12 years where I actually receive a 30%+ dividend return every winter, reducing it even more......
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Old 05-30-2019, 03:12 PM   #35
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Re: Workers Comp Audit...


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You're only 1.5 hours South of me, maybe a tad more, and you guys are getting hosed. We pay about 14.9% here for masonry up to 3 stories. On concrete footwork, it's just below 10%. I have fallen into some sort of "sweet spot " for the last 10-12 years where I actually receive a 30%+ dividend return every winter, reducing it even more......


Doesnt matter if its 1.5 hours or 15 feet, if that invisible fence (state line) is between us thats all that matters!! Haha

I asked a general contractor what he pays he does mostly flat work concrete and his rate is 14% however his snow plow rates are 31%

I couldnt believe that snow plowing rates were higher than me.... he has a pretty big snow plowing operation though and I think he has over 30 skid-steers that are dedicated to snow

Before my dad close down our long-standing company that received a claim free discount we were at 21%

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